Construction disputes are a common occurrence in the construction business, and it is important for contractors, property owners, investors and anyone working in the industry to be aware of the legal implications that can arise from these disputes. Simply put, construction disputes are conflicts between two or more parties regarding some issue in the construction process. These disputes can arise from a variety of sources such as delays, warranty issues, cost overruns, and disputes over the quality of the work performed. In Arizona, construction disputes are handled through a variety of legal avenues, including the arbitration process, mediation, and litigation.
For disputes that are not resolved through arbitration or mediation, the parties may take their case to court. In Arizona, the court system is set up to handle a variety of construction disputes, ranging from breach of contract claims to tort claims. When filing a claim in court, it is important for the parties involved to understand the applicable laws and regulations, as well as the process for filing a claim. It is advisable to work with a construction attorney to understand the potential types of damages that might be awarded and risks before pursuing any claim.
Types of Construction Disputes
Understanding the regular types of construction disputes and the legal process for handling them can help contractors and other individuals involved with the construction industry to prepare for and resolve these common legal issues in Arizona. With the right legal guidance and knowledge, any party involved in construction projects can protect their rights and interests in a construction dispute and reach a successful resolution.
Construction disputes in Arizona can come in a variety of shapes and sizes, from issues with design to issues with construction performance. Breach of contract is one of the most common types of disputes and occurs when one party does not fulfill its obligations as set forth in an agreement. This can arise from a variety of reasons, such as failure to provide the agreed-upon services or products, delay in delivery, or failure to abide by the plans and specifications incorporated into the construction agreement.
Delay claims occur when a project is delayed due to an action by either party, such as failure to provide materials or services in a timely manner. Design errors and omissions can cause costly delays and/or mistakes that can lead to disputes between architects, general contractors and owners. Construction defects can also lead to a variety of claims, as one party may claim that the other failed to perform per the contract and/or applicable building codes and regulations. Change orders and “extra” work can also be a source of dispute, as one party may not understand it is responsible for additional costs or changes due to new circumstances learned during the construction process. Understanding these types of disputes and how to handle them is essential for anyone in the industry to ensure that construction projects are completed without issue.
Construction Dispute Resolution in Arizona
Understanding and handling construction disputes in Arizona is an important part of any project and can be a difficult process for those unfamiliar with the legal system. As such, it’s important to familiarize yourself with the different types of resolutions available and the proper process for each. Most lawyers will advise parties to negotiate their differences in order to resolve construction disputes. Having a skilled and experienced construction attorney can significantly improve your outcome in a complex negotiation to resolve a construction dispute.
Construction contracts routinely contain an Alternative Dispute Resolution (“ADR”) provision whereby the parties agree to either mediate or arbitrate a dispute. Mediation is a form of negotiation whereby a third party (unaffiliated and objective) mediator helps facilitate negotiations if direct negotiations between the parties fail to find a resolution. Mediation requires both parties agree to a resolution and no one party is “forced” to settle. There is no “legal decision” or “order” in a mediation. On the other hand, arbitration is another way to resolve construction disputes in Arizona and is similar to a ‘mini-trial’ where exhibits and witnesses are presented before a neutral third-party arbitrator or panel of arbitrators. After presentation of the evidence, the Arbitrator makes a formal decision which is normally binding on the parties if agreed to in the construction contract.
In a previous article, we detailed the specific process for handling construction defect complaints against a contractor in Arizona. The Arizona Registrar of Contractors (“AROC”) has a convenient online form to file a complaint for deficient work against a residential homebuilder/contractor. AROC matters, however, are limited to substandard work complaints and not payment disputes. Thus, in order to address payment issues along with deficient work, a homeowner must bring a complaint before the Superior Court. To do so, the homeowner must first comply with the complicted Arizona “Right to Repair” Act which is a field of landmines to the uninformed. As such, it is highly advisable to consult with an experienced construction attorney to review the matter and prepare the appropriate claim before filing or initiating the litigation process.
Have an Experienced Construction Attorney on Your Side
Understanding and handling construction disputes in Arizona is important for anyone in the industry. Not only will it help to protect the parties involved, but it will also help to maintain positive working relationships and ensure that projects are completed efficiently and with minimal delays. Having the necessary knowledge to properly address and resolve construction disputes can benefit everyone involved and help to ensure the success of any project. The attorneys at RSN Law have helped our clients avoid common pitfalls, provided exceptional construction dispute resolution services and pursued litigation when necessary. Contact our firm today at 480-712-0035 or schedule an appointment on our contact us page.
RSN Law intends this article to be for informational purposes, not to be relied on a specific legal matter, and does not create an attorney-client relationship.